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Seagram's Heiress Clare Bronfman, 3 Others Arrested In Nxivm 'Sex Cult' Case
By
Claire Lampen
Published Jul 25, 2018
Modified Jul 25, 2018
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Mary Altaffer/AP/Shutterstock
By
Claire Lampen
Published Jul 25, 2018
Modified Jul 25, 2018
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More arrests in the Nxivm "sex cult" case came Tuesday, as authorities took four people—including the group's co-founder, its bookkeeper, and its benefactor—into custody upstate. Clare Bronfman, of the Seagram's liquor Bronfmans, who has reportedly been footing Nxivm's bill, posted $100 million bail (one of the highest set in the U.S.).
Scrutiny around the purported self-help group, led by former multilevel-marketing entrepreneur Keith Raniere, intensified after an October 2017 NY Times article detailed allegations of emotional manipulation and physical torture. According to former members who spoke to the Times, leaders who deemed themselves "masters" recruited other women, dubbed "slaves," into their ranks, promising personal and professional advancement, but instead inducted "slaves" into ritualistic sexual servitude to Raniere. "Masters" are said to have branded new members with a symbol that bore an uncanny resemblance to Raniere's initials, K.R., on their hips.
Raniere, of course, has denied that his group—co-founded with Nancy Salzman in the late 1990s—was a cult, but experts have rejected that claim. Federal investigators seem to have rejected it, too: After fleeing Nxivm's upstate headquarters, he was arrested in Mexico in March and, in April, Raniere, known to his subjects as "Vanguard," was indicted for sex trafficking and forced labor conspiracy.
Bronfman, who was charged with money laundering and identity theft, has been a member of the group for years, and Vanity Fair reported in 2010 that she and her sister Sara reportedly funneled $150 million into Nxivm. Their devotion reportedly caused an estrangement with their father.
The other women arrested Tuesday also face assorted racketeering charges: Nxivm President Nancy Salzman, her daughter Lauren—whose charges include labor trafficking, forced labor, extortion, and conspiracy to commit wire fraud—and bookkeeper Kathy Russel. Those three were arraigned in Albany, while Bronfman was arraigned in Brooklyn. The U.S. Attorney's office outlined the group's disturbing alleged behavior:
Raniere and Bronfman conspired to commit identity theft arising out of a scheme to obtain the e-mail usernames and passwords of perceived enemies and critics of Raniere in order to monitor their electronic communications.
Raniere and Bronfman participated in an identity theft conspiracy involving the use of credit card and banking information belonging to one of Raniere’s sexual partners after her death in November 2016. Bronfman sent Raniere regular emails documenting expenses charged to the woman’s credit card for Raniere’s “review and approval.” Those expenses included payments to a chiropractor for Raniere’s benefit, as well as thousands of dollars’ worth of clothing and shoe purchases for the mother of Raniere’s child.
Bronfman encouraged and induced the illegal entry into the United States of an alien for Bronfman’s financial gain, engaging in international wire transfers to make it fraudulently appear that the victim had the financial resources to obtain an investor visa.
Raniere and Lauren Salzman trafficked a victim, who was once a sexual partner of Raniere’s, for labor and services. The victim was confined to a room in Clifton Park, New York, for nearly two years as punishment for having romantic feelings for a man who was not Raniere. The victim was told that if she left the room she would be sent to Mexico without any identification documents. As threatened, she was driven to Mexico and her family was instructed by co-conspirators, including Lauren Salzman, not to send the victim her identification documents.
Raniere and Lauren Salzman obtained property and services from their slaves through fraud and extortion. After DOS was exposed, Salzman was one of the leaders of a disinformation campaign designed to spread lies about DOS and Nxivm members in order to discredit victims.
Nancy Salzman, in her role as second-in-command to Raniere within Nxivm, conspired with Raniere and others to obstruct justice by altering records in connection with a civil lawsuit initiated by Nxivm against a former Nxivm student. As part of the discovery in the former student’s countersuit, Nancy Salzman was ordered to turn over videos of courses the student had taken. Nancy Salzman engaged in a scheme to edit videos of courses she had taught to remove materials that she and her co-conspirators believed would have supported the former student’s claims.
Raniere and Russell conspired to commit identity theft as part of a scheme to smuggle an alien into the United States through Canada after the alien was denied entry. Russell provided the alien with an identification card bearing the last name and birthday of a dead woman.
Raniere and Smallville actress Allison Mack were added to Tuesday's indictment. Mack, considered to be Raniere's lieutenant, was originally charged in April and released on house arrest after posting $5 million bond. It's believed that she was part of Raniere's strategy to lure other actors into the group.
Bronfman's lawyer, Susan Necheles, maintains her client's innocence. "Clare Bronfman did nothing wrong," she wrote in a statement, emailed to Gothamist. "Nxivm was not a criminal enterprise but instead was an organization that helped thousands of people. The charges against Clare are the result of government overreaching and charging an individual with crimes just because the government disagrees with some beliefs taught by Nxivm and held by Clare. This is not how things should be done in America. We are confident that Clare will be exonerated."
And Bronfman, for her part, has defended Raniere. As the Post reports, she wrote in a since-deleted Facebook post that he had "not coerced nor abused anyone," and that "the sorority has truly benefited the lives of its members, and does so freely."
"I find no fault in a group of women (or men for that matter) freely taking a vow of loyalty and friendship with one another to feel safe while pushing back against the fears that have stifled their personal and professional growth," she added. If convicted, Bronfman faces up to 20 years in prison.
Bronfman is supposed to appear in court today and tomorrow to detail her bail/bond request.
Tagged
allison mack
clare bronfman
cult
keith raniere
nxivm
seagrams
Claire Lampen
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